"When fascism comes to America, it will be wrapped in the flag and carrying the cross."
-- Sinclair Lewis

Monday, March 30, 2009

GM's Rick Wagoner Falls On His Sword-- What About The Banksters?

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This morning, President Obama is going to reveal the details of the government's next step in bailing out the auto industry. Yesterday Rahm Emanuel leaked the news that as part of the deal General Motors CEO Rick Wagoner, is resigning and that the plans for restructuring from GM and Chrysler don't make the grade. Excellent idea on the firing and important oversight on the restructuring! I can't understand why Obama hasn't done the same thing with the far more venal and far more criminal banksters. Wagoner has been CEO since 2000 and the catastrophic decision to make GM into an SUV company and ignore fuel efficient vehicles was his. He deserves his fate.

When Paulson forced Robert Willumstad out as CEO of AIG as part of the deal to bail them out, they forced Republican hack Edward Liddy on the Board of Directors. It isn't clear yet how Wagoner's successor will be determined but it isn't likely Obama would make the same kind of power play that Bush did with Liddy. GM President Fred Henderson will probably take over on an interim basis.

G.M. and Chrysler have almost exhausted the $17.4 billion in federal aid the two companies have received since December. G.M. has asked for up to an additional $16.6 billion, and Chrysler has requested another $5 billion.

According to people close to the talks, the task force will treat G.M. and Chrysler differently with respect to their restructuring plans and aid requests.

...Mr. Obama, in comments in a televised interview on Sunday, said neither G.M. not Chrysler had yet to meet the conditions of their existing loans.

“That’s going to mean a set of sacrifices from all parties involved-- management, labor, shareholders, creditors, suppliers, dealers. Everybody’s going to have to come to the table and say it’s important for us to take serious restructuring steps now in order to preserve a brighter future down the road,” Mr. Obama said in a taped interview on the CBS news program Face the Nation.

While President Obama did not specify a need to replace Mr. Wagoner at G.M., the president has repeatedly cited mistakes made by management as a contributing factor to the industry’s troubles.

Wagoner makes most of his political donations through the General Motors PAC, although he wrote personal checks to members of both parties, mostly Michigan elected officials. Nationally he tended to give to conservative Republicans like Bush, Gingrich and Ashcroft. The General Motors PAC gave overwhelmingly to Republicans until this year. In 2006 the PAC gave 74% of it's $626,330 in donations to Republicans and it's heaviest non-Michigan contributions went to very conservative Republicans: Joe Barton (R-TX), Roy Blunt (R-MO), Denny Hastert (R-IL), Paul Ryan (R-WI), Bill Thomas (R-CA), George Allen (R-VA), Jon Kyl (R-AZ), Gordon Smith (R-OR), and Jim Talent (R-MO). In 2004 the PAC's donations were even more oriented towards right-wing Republicans (76%) and until 2008 the donations have always overwhelmingly favored rightists.

A careful examination of the GM PAC's contribution patterns, while Wagoner headed the comnpany shows they are very effective-- FAR, FAR more than labor unions-- at picking out members and candidates who are ideologically predisposed to fight for their special interests, with large sums always going to up-and-coming right-wingers like Eric Cantor (R-VA), Paul Ryan (R-WI), Marsha Blackburn (R-TN), as well as taking care of any rightist who looks like he's facing electoral trouble-- so donations to losers and near-losers like Phil English (R-PA), Randy Kuhl (R-NY), David Dreier (R-CA), Charlie Dent (R-PA), Sam Graves (R-MO) and Lee Terry (R-NE).

I find it ironic that a blog titled "Down with Tyranny!" and that features a quote about fascism does not recognize true tyranny and true fascism. Fascism is private ownership of the means of production with government control. That is exactly what Obama has just done in firing the head of a private business. That is exactly what Alan Grayson is doing with his unconstitutional legislation of imposing pay restrictions on private employees. This is textbook fascism. Obama and his decrees are fascist.